Future slot rules for Rockford may be borrowed from neighbors

The Rockford Republican says Illinois’ video gaming laws strayed from their original intent to help social clubs and taverns, leading to hundreds of new slot parlors to pop up across the state.

But getting legislation passed will take more time than municipalities have to deal with the seemingly constant pressure to approve new gaming businesses, Syverson said. A bill he introduced this year never gained traction; it faced pressure from all sides, including casinos, owners of slot-machine parlors and truck stops, and machine operators.

“It really is going to be up to municipalities to fix this issue now, because the soonest we’re going to fix it is going to be eight to 10 months from now,” he said.

Rockford aldermen recently announced their intention to define new ways to regulate gaming. Ald. Joseph Chiarelli, who leads the city’s Code and Regulation committee, said Syverson’s bill, as well as rules drawn up in neighboring communities could serve as a blueprint for Rockford as it works to decide its own regulations.

Here’s a look at what’s done in those communities and what Syverson’s bill proposed.

Syverson’s bill

What it would do: The bill is intended to limit gaming to businesses that make the majority of their sales from food and beverages. The goal is to help charitable clubs and bars while preventing stand-alone slot parlors from being built.

Timeline: Syverson’s gaming bill didn’t pick up traction this year. He hopes to reintroduce the recommendations next year as part of a more comprehensive gambling bill.

Loves Park cap

What was done: In June, the city put a 20-site limit on the number of boutique slot-machine parlors that can operate in the city; 18 are in operation. It also placed a restriction that said slot shops couldn’t be within 1,000 feet from each other.

In August, the city capped the number of bar licenses at seven, which means any new gaming facilities must have a restaurant in conjunction with alcohol sales.

Why: The city wanted to prevent parlors from clustering together and slow the overall growth of gambling.

“I’m basically a free-market guy, but on the other hand I could sense that we were starting to get people saying ‘Is that all you’ve got out there?’ and we don’t want that from a community-image standpoint,” Mayor Darryl Lindberg said.

“I don’t think anybody anticipated the amount of play that was going to be received.”

Slot stats: The number of businesses with gaming in Loves Park grew, from 35 to 45, since the start of the year. Loves Park gamblers have wagered $76.5 million this year and lost $5.9 million, according to a report from the Illinois Gaming Board.

Tax revenue: Nearly $300,000 this year.

Machesney Park’s liquor limits

What was done: A special license for gaming parlors was created more than a year ago, and the village limited the number of such licenses available. Three businesses have the boutique bar license for so-called slot-machine parlors that focus more on video gaming than food or drink. The village also put a cap on all liquor licenses, with the exception of those that apply to restaurants. A business must have at least 50 percent of its revenue come from food, and it needs a full-service kitchen to get the restaurant license.

Slot stats: Twelve businesses in Machesney Park include gaming. Gamblers wagered $23.2 million at those machines this year and lost more than $1.6 million.

Tax revenue: Nearly $85,000 this year.

Rockford’s rules

What’s being considered: The City Council will consider rules about distance between gaming facilities, signs, limiting the types of business that can have slots and whether to put a cap on the number of parlors in town.

Slot stats: The city has 80 businesses with slot machines, an increase of 22 since January. Gamblers have wagered more than $151.9 million and lost $11.9 million this year.

Tax revenue: Nearly $600,000 this year.

What’s next: The Code and Regulation Committee won’t hear any new gaming proposals until new regulations are in place. A special meeting is scheduled for Sept. 3 to begin to develop those rules.

In business

Regulating signs: Jay Gesner, who owns four establishments with gaming, prefers the free market to determine how many slot-machine parlors set up in town, but he understands the concerns of the City Council. Gesner, the soon-to-be president of the Illinois Licensed Beverage Association, said the largest concern he’s heard is about the appearance of a multitude of slot-machine signs in town and is willing to work with the council to develop some restrictions.

“Gold rush”: Mark O’Donnell of Slots of Fun on Charles Street compared the growth of video gambling to the California Gold Rush of 1849: “Seemingly, now everyone has an angle of trying to get a liquor license in order to put slot machines in any open space they can find.”

Praise for rules: O’Donnell and his business partners applaud the City Council for developing rules to govern gaming in the city.

“We respect and believe adults should have the right to choose, in healthy moderation, how and where they want to spend their money. However, most residents and neighboring businesses would agree that ‘clustering’ certain industries like slot machine establishments, bars, strip clubs, tattoo parlors, payday loan and tobacco/pipe stores in close proximity to each other does not diversify any neighborhood and discourages other business from investing in those areas.”

Kevin Haas: 815-987-1410; khaas@rrstar.com; @KevinMHaas

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